Zen Tech Targeted to Reach Rs 1850 by Choice Institutional Equities: Market Analysts

Zen Tech: A Strategic Play in Evolving Global Warfare Dynamics

Choice Institutional Equities' latest report on Zen Tech presents a compelling narrative of strategic alignment with the shifting global warfare landscape. With a clear emphasis on building a future-ready portfolio across anti-drone systems, interceptor drones, and next-generation combat solutions, Zen Tech is well-positioned to capitalize on the rising demand for cost-efficient, technology-led defence systems.

The report highlights the significant expansion of Zen Tech's long-term opportunity set, driven by the accelerating geopolitical tension and the need for advanced defence solutions. However, it also notes that the order finalisation timelines remain inherently uncertain, influenced by procurement processes and budget cycles. As a result, the report moderately recalibrates FY27-28E assumptions to reflect slower conversion of the pipeline despite strong demand.

Outlook and Estimates Revision

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Based on the revised assumptions, Choice Institutional Equities has revised its FY27E and FY28E EPS estimates by -32.6% and +0.1%, respectively. The report also forecasts Revenue/EBITDA/PAT to grow at a CAGR of 67.3%/67.3%/66.0% over FY27-29E. This revised growth trajectory is reflected in the updated target price of INR 1,850, with the rating maintained at 'BUY'.

These revised estimates and forecasts underscore the potential of Zen Tech to navigate the evolving global defence landscape, making it an attractive investment opportunity for investors seeking to capitalize on the growing demand for advanced defence solutions.